24/10/2011

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:00:28. > :00:32.Good afternoon and welcome to the Daily Politics. It is Monday, yes,

:00:32. > :00:36.the start of a difficult week for David Cameron. This afternoon he is

:00:36. > :00:40.facing one of the biggest rebellions by his backbenchers,

:00:40. > :00:43.some of whom want a referendum on the UK's relationship with the

:00:43. > :00:47.European Union. He would like to whip them into shape but it could

:00:47. > :00:52.prove a tall order. On Wednesday he is off to Brussels

:00:52. > :00:56.for another crisis meeting. Over the weekend President Sarkozy told

:00:56. > :01:01.David Cameron that he was sick of Britain criticising the eurozone

:01:01. > :01:07.countries and telling them what to Is private always best? We will

:01:07. > :01:11.look up the pros and cons of councils outsourcing their services.

:01:11. > :01:16.All of that in the next half an hour. With us for the whole

:01:16. > :01:20.programme is the director general of the CBI, John Cridland. Welcome

:01:20. > :01:24.to the programme. Without further ado, let's talk about the crisis

:01:24. > :01:28.facing the eurozone. It has been rumbling on for months and despite

:01:29. > :01:32.demand for urgent action, European leaders have only gradually edged

:01:33. > :01:35.towards a solution. The summit revealed there were still

:01:35. > :01:39.disagreements between France and Germany and friction between

:01:40. > :01:43.Nicolas Sarkozy and David Cameron. Nevertheless we are promised that

:01:43. > :01:48.the deal will be struck up the next summit on Wednesday. What might the

:01:48. > :01:54.final package look like? First, Greece's massive debt will be

:01:54. > :01:56.written down, possibly by as much as 60%. Without that, the fear is a

:01:57. > :02:02.disorderly default with Greece leaving the eurozone. That would

:02:02. > :02:11.mean heavy losses for Europe's Bank's survey will it need more

:02:11. > :02:18.capital. 8 billion euros was suggested at the weekend. -- 108

:02:18. > :02:22.billion euros. At about mechanism may have to be expanded to two

:02:22. > :02:27.trillion euros. Exactly how that will work will be the subject of

:02:27. > :02:36.debate between Angela Merkel and Nicolas Sarkozy. They will also

:02:36. > :02:39.discuss whether a European treaties should be redrawn to give them more

:02:39. > :02:44.control over the budgets of different countries. Is this the

:02:44. > :02:49.final moment? I do not know if it is the final moment but we are

:02:49. > :02:52.certainly at the 11th hour. This is where business and politics meet.

:02:52. > :02:55.Business confidence is slipping, the world growth rate is slowing,

:02:55. > :02:59.people are worried about jobs and living standards and the biggest

:02:59. > :03:04.single reason is what is going on in Brussels. Interestingly, the

:03:04. > :03:08.markets have been pretty mild today, bearing in mind there is so much

:03:08. > :03:12.uncertainty. Does that surprise you? I think the markets have a

:03:12. > :03:16.pregnant pause. They are waiting to see if Wednesday will be a

:03:16. > :03:20.resolution. If we do not get good news on Wednesday, then the markets

:03:20. > :03:24.will respond badly. At the moment, they are holding fast. But you

:03:24. > :03:28.think that if on Wednesday there is no deal on those three things,

:03:28. > :03:32.recapitalisation, shoring up the sovereign debt in those far

:03:32. > :03:36.honourable countries, and the Greek default, what do you think will

:03:36. > :03:39.happen to the markets? How bad will it be? There will be some

:03:39. > :03:44.announcements on Wednesday and then we will have to read the fine print

:03:44. > :03:47.to see how far they have got. We need each of those three challenges

:03:48. > :03:52.to be essentially resolved as quickly as possible. Otherwise how

:03:52. > :03:56.bad will it be? I think the markets have already costed in a lot of the

:03:56. > :04:00.bad news. Look at what has happened since August. At the end of the day

:04:00. > :04:03.I am more bothered about what businesses will do, not markets. At

:04:03. > :04:08.the moment businesses are not investing because they have not got

:04:09. > :04:12.confidence. Also on businesses, lots of euro-sceptics in Britain so

:04:12. > :04:17.that one of the biggest problems they have with the eurozone is the

:04:17. > :04:21.amount of red tape and regulation. Is there that much red tape and

:04:21. > :04:25.regulation on British business? Is it impeding growth? Yes, red tape

:04:25. > :04:30.from Europe is impeding growth. We could employ more people if we did

:04:30. > :04:32.not have European regulations on employment. There are lots of

:04:32. > :04:36.regulations proposed by the European Commission that would

:04:36. > :04:39.damage the City of London and our professional and financial services.

:04:39. > :04:43.British business wants access to the single market but it does not

:04:43. > :04:47.want the rigmarole that goes with it. We will talk later about the

:04:47. > :04:50.spat between David Cameron and Nicolas Sarkozy at the weekend.

:04:51. > :04:56.Before we get to that, David Cameron has been talking about the

:04:56. > :05:00.eurozone crisis and the vote in the House of Commons today.

:05:00. > :05:03.While the UK is not in the eurozone and we have no intention of joining

:05:03. > :05:07.the euro, it is in Britain's interest to have a strong and

:05:07. > :05:12.healthy eurozone. Nothing would do more to help our economic recovery

:05:12. > :05:17.right now than a resolution of the eurozone crisis. I don't think this

:05:17. > :05:21.is the right time to legislate for an in out referendum. It is the

:05:21. > :05:26.right time to sort out your its problems, the eurozone problems,

:05:26. > :05:30.defender national interest and looked to the possibility of

:05:30. > :05:35.repatriating powers back to Britain. The idea of limited treaty change

:05:35. > :05:40.in the future might give us that opportunity. I am joined brow by

:05:40. > :05:45.Sir Michael Rifkind, the former Foreign Secretary. -- I am joined

:05:45. > :05:51.now. He does have a point. Britain should shut up shouting from the

:05:51. > :05:55.sidelines on the euro. No, I do not agree. We will all be affected by

:05:55. > :06:01.the collapse of the eurozone and dramas of that time, so we can

:06:01. > :06:06.express our opinions. We cannot try and veto what eurozone members want

:06:06. > :06:10.to do to sort out their own mess. think it is about endlessly

:06:10. > :06:15.criticising. It is not just having their say. The message was that all

:06:15. > :06:19.of the rhetoric was not helpful if you are saying that the euro was

:06:19. > :06:24.useless. You are in buying it is all rhetoric but I think it was a

:06:24. > :06:28.proper debate and discussion. -- you are implying. If we cannot

:06:28. > :06:32.express our views open, honestly and courtesy, that would be a

:06:32. > :06:38.misfortune for Europe. So you think Nicolas Sarkozy should shut up

:06:38. > :06:43.instead? I would not even say it in French! David Cameron is close to

:06:43. > :06:47.fiscal integration of the eurozone, but then we have the rowers played

:06:47. > :06:51.out again, that Britain is on the outside, not at the negotiating

:06:51. > :06:54.table. I think we are in a better position than the alternative would

:06:54. > :06:58.have been. The crucial thing is that the euro will be here to say

:06:58. > :07:01.unless it collapses and if it collapses, it will be bad news for

:07:01. > :07:06.the United Kingdom because that total instability will jeopardise

:07:06. > :07:10.the part of the world that takes 40% of our trade. The question is

:07:10. > :07:13.how you reconcile that with our own very firm position that we will not

:07:13. > :07:18.be part of the eurozone, but we have no objection to those that

:07:18. > :07:22.wish to be involved. You are worried that 17 countries will make

:07:22. > :07:26.decisions and we will be outside? think this is all about the future

:07:26. > :07:29.of the European Union. It is not in or out, it is what kind of European

:07:30. > :07:36.Union and whether we can develop a European Union of diversity, which

:07:36. > :07:38.does not expect everybody to be uniform. At the moment, only some

:07:38. > :07:43.of the States are in the eurozone and that is not an interim

:07:43. > :07:47.arrangement. The package is expected to require the rewriting

:07:47. > :07:51.of existing treaties. Or would you expect there to be a referendum in

:07:51. > :07:54.Britain? I will answer your question but I have to precede it

:07:54. > :07:58.by saying that if there is going to be a negotiation about in the

:07:58. > :08:01.treaty to deal with eurozone problems, that is the perfect

:08:01. > :08:05.opportunity for Britain to raise other treaty amendments that might

:08:05. > :08:09.be appropriate. We have always said that if there is any treaty change

:08:09. > :08:12.which limits British sovereignty further, that would have to be

:08:12. > :08:15.subject to a referendum. Even if there is not a transfer of power in

:08:15. > :08:23.that sense but there is some sort of tree detained that has to be

:08:23. > :08:33.ratified by all 27 countries in order to limit countries borrowing

:08:33. > :08:33.

:08:33. > :08:37.in the future? -- some sort of treaty. Off I would suggest a

:08:37. > :08:41.referendum if there is some erosion of sovereignty. Otherwise it

:08:41. > :08:45.becomes a matter of judgement as to whether it should be subject to a

:08:45. > :08:49.referendum. That would be the sticking point. Don't ask anyone to

:08:49. > :08:53.express a view until we know what we are talking about. Fine, but

:08:53. > :08:58.this could be quite close. David Cameron is trying to claw back

:08:58. > :09:02.powers and he wants to do it now. It could happen quickly.

:09:02. > :09:06.crucial business in House of Commons today, is that if you are

:09:06. > :09:14.going to have a referendum, which may be a pro ship, it should be at

:09:14. > :09:21.the end of the negotiating process not in advance, -- which may be

:09:22. > :09:26.appropriate. So why is it the wrong time? There could be a European

:09:26. > :09:30.Union based on trade, but that is not a third option. Fair enough,

:09:30. > :09:34.but why is it the wrong time and the wrong subject? This is a

:09:34. > :09:39.massive economic crisis. David Cameron thinks it is an ideal

:09:39. > :09:42.opportunity to claw back power. does not. Until the eurozone crisis

:09:42. > :09:46.is resolved, that is the fundamental crisis that Europe has

:09:46. > :09:49.to address. The question of Britain's relationship with the

:09:49. > :09:53.European Union is hugely important. That is not something you can deal

:09:53. > :10:00.with on Wednesday at the summit that he will be attending. As the

:10:00. > :10:08.Government handled this well with the back benches? I do, you know. I

:10:08. > :10:13.do think that. The issue is not who will win the vote. The issue is

:10:13. > :10:17.that it is a challenge to the Government's authority from now on.

:10:17. > :10:20.I think the Prime Minister is absolutely right to say it is a

:10:20. > :10:24.fundamental question. A referendum was not in the manifesto of a

:10:24. > :10:28.coalition agreement. We have to demonstrate that we are a

:10:28. > :10:31.Government that is able to govern. The massive vote on Thursday, with

:10:31. > :10:35.a wan Lin whip, where the Government has not even bother to

:10:35. > :10:38.explain why it is not be acceptable, that would have a severe impact on

:10:38. > :10:48.Government credibility. Do you think the Government has handled it

:10:48. > :10:52.well, bearing in mind so many MPs could rebel? But his business is --

:10:52. > :10:57.British business is concerned with the economy. We want to get on with

:10:57. > :11:00.creating jobs. The idea of a referendum on the EU would be a

:11:00. > :11:06.mild distraction. This is not a referendum right now, but a motion,

:11:06. > :11:09.a debate, for a call for referendum in the next session of Parliament.

:11:09. > :11:13.It is an attempt to get the vote in Parliament which would be used to

:11:13. > :11:16.say that Parliament has voted that there has to be a referendum on

:11:16. > :11:20.leaving the European Union. For that to be Britain's sole

:11:20. > :11:25.contribution this week to the resolution of the eurozone crisis

:11:25. > :11:29.would be a form of self-indulgence which we would not be forgiven for.

:11:29. > :11:34.Why do you think the Government has handled it well when they have

:11:34. > :11:38.wrapped it up, trying to nobble MPs? We know there have been

:11:39. > :11:44.threats that MPs will not get promotion and could achieve their

:11:44. > :11:49.seats. Does that mean handling it well? I cannot comment on threats.

:11:49. > :11:52.If the Government has a very clear policy, which it has, that they

:11:52. > :11:57.wish to repatriate certain powers and we do wish there to be

:11:57. > :12:00.renegotiation, we do not believe in a referendum, then that is what the

:12:00. > :12:04.Government believes and the Government is perfectly right and

:12:04. > :12:09.proper to seek to persuade its own members, who were elected on that

:12:09. > :12:14.manifesto. It is not a binding vote. That is not the point. It is the

:12:14. > :12:20.impact I made earlier. The erosion. I was in John Major's Government

:12:20. > :12:24.and the constant attacks, not just by euro-sceptics, we are role euro-

:12:24. > :12:27.sceptics on single European currency! -- we are all euro-

:12:27. > :12:32.sceptics. But that constantly damage the credibility of that

:12:32. > :12:37.Government, did a lot of harm and contributed to the size of Tony

:12:37. > :12:40.Blair's of majority won the election finally came. Thank you.

:12:40. > :12:46.How is David Cameron's battle of strength with his backbenchers

:12:46. > :12:49.facing at? This could be the largest ever revolt on Europe.

:12:49. > :12:54.Parliament will debate later proposals for a referendum on

:12:54. > :12:56.Europe. Let's look in more detail at what is at stake. The motion

:12:56. > :13:03.calls for a referendum in the next session of Parliament with three

:13:03. > :13:09.options put to the public. Keep the status quo, leave the EU, or reform

:13:09. > :13:13.the terms of the European Union membership. MPs have been

:13:13. > :13:17.instructed to vote against the motion. There is likely to be a

:13:17. > :13:20.significant rebellion, especially among Conservative MPs. How big

:13:20. > :13:25.will it be? If you combine a number of Conservatives that signed the

:13:25. > :13:30.motion by Friday and the number that have already defied the whips

:13:30. > :13:35.over Europe since May, 2010, then the number was 78. Some reports say

:13:35. > :13:39.that as many as 100 Conservative MPs could defy the Government in

:13:39. > :13:42.some way later today. However big the Conservative revolt, it is

:13:42. > :13:47.likely to be the largest ever rebellion by Conservative MPs when

:13:47. > :13:50.in Government over the issue of Europe. Joining me now is the

:13:50. > :13:54.Conservative backbencher Mark Pritchard, who will be voting

:13:54. > :14:00.against the Government and the Liberal Democrat peer whose party

:14:00. > :14:04.promised an outright referendum at the last election. Mark Pritchard,

:14:05. > :14:10.you probably heard Malcolm Rifkind talking then. He was saying it was

:14:10. > :14:15.the wrong motion, the wrong time and the wrong subject. There are

:14:15. > :14:20.those that say that we should have an immediate referendum. That is

:14:20. > :14:23.not the case. If it was, then I would have some sympathy with the

:14:23. > :14:28.concerns expressed by Sir Malcolm Rifkind and indeed other Government

:14:28. > :14:34.ministers. This motion is calling for a Bill to be brought before

:14:34. > :14:37.Parliament, over an 18 month period, the period is actually specified.

:14:37. > :14:41.After that, the bill would be debated in the normal way, going

:14:41. > :14:45.through both Houses of Parliament, and then subsequently there would

:14:45. > :14:49.be a referendum which would be another couple of years after that.

:14:49. > :14:53.This motion is neither determine the final contents of a build nor

:14:53. > :14:56.the final contents of any referendum question. It would

:14:56. > :15:00.instruct the Government to hold that referendum in the next session

:15:00. > :15:03.of Parliament and that is their problem. The fact is I do not think

:15:03. > :15:07.that Europe will go away as an issue. I think it is back and it

:15:07. > :15:10.will be more of an issue rather than less. I think it is right that

:15:10. > :15:14.Parliament should reflect public opinion and speak out on behalf of

:15:14. > :15:24.constituents. The Government should get ahead of the political perv,

:15:24. > :15:24.

:15:24. > :15:29.rather than being behind the political curved. Whether it is tax,

:15:29. > :15:37.bail-outs, Europe is here as an ever-present issue. It is something

:15:37. > :15:41.that we have to tackle and we need But you are trying to tell the

:15:41. > :15:44.Government what to do, and that's why they don't like it? We are not.

:15:44. > :15:48.The motion calls on the Government to introduce a Bill to provide for

:15:48. > :15:51.the hold of course a national referendum on whether the UK should

:15:52. > :15:55.A remain a member of the union, status quo, or leave all together.

:15:55. > :15:58.Now, that is telling the Government what it should do if you were to

:15:58. > :16:02.win that motion today which you are not going to? The origins of this

:16:02. > :16:05.was the Government's own initiative e-petitions over 100,000 people

:16:05. > :16:09.have signed this petition. That's high the motion has been brought

:16:09. > :16:12.before Parliament, not because of some centre right grouping within

:16:12. > :16:15.the Conservative Party and let's remember, Jo, that there are people

:16:15. > :16:20.across the political divide that have signed this motion today.

:16:20. > :16:24.that is true. Bringing in Lord Oakeshott. It's hypocritical of

:16:24. > :16:28.your party who stood on a platform with an in-out referendum, now they

:16:28. > :16:31.are saying everyone should vote against it? No, it's not

:16:31. > :16:34.hypocritical. We said we were committed to it if there was

:16:34. > :16:38.fundamental change in the relationship between the UK and the

:16:38. > :16:42.EU and there won't be. What we have is a coalition agreement that Mark

:16:42. > :16:47.may not think, but the rest of us signed up to which thinks Britain

:16:47. > :16:51.is going to be a positive participant in the ch U playing a

:16:51. > :16:55.strong and positive role. This is the last thing we should be doing

:16:55. > :16:59.at a time when the eurozone and the whole kth western world is in

:16:59. > :17:02.crisis, to start going on about what Mr Pritchard says is an in or

:17:02. > :17:06.out or shake it all about referendum. What on earth does that

:17:06. > :17:10.mean? If we want to talk about the commitment that both parties made...

:17:10. > :17:14.No, let's talk about the specific point. Why are you going on about

:17:15. > :17:19.this at a time when John Cridland and Lord Oakeshott have said it's

:17:19. > :17:23.destructive at a time when the eurozone is in crisis? Let me say

:17:23. > :17:31.that Europe's made Europe an issue again in the House of Commons, not

:17:31. > :17:36.a small group of Conservative backbenchers. The size is growing.

:17:36. > :17:41.Europe will be more rather than less of an issue. Europe need to be

:17:41. > :17:44.ahead of the political curve. This issue is not going to go away. It's

:17:44. > :17:48.not just about the individual powers that we may or may not

:17:48. > :17:51.renegotiate, it's about the independence and sovereignty.

:17:51. > :17:55.a minute, Mr Pritchard is like a stamp collector going on whatever

:17:55. > :17:59.is happening about his collection. Britain is in a desperate state.

:17:59. > :18:02.Our jobs, our economy is at risk and all he can talk about is the

:18:02. > :18:08.small print of what the Tories did in one particular election or not.

:18:08. > :18:12.We've bot to stick together. These are our main trading partners --

:18:12. > :18:15.got to stick together. Our own economy will go down the tubes. I

:18:15. > :18:18.never thought I would agree with William Hague on Europe but I am

:18:18. > :18:22.today. Events have moved on since the

:18:22. > :18:29.coalition agreement and also there are things in the coalition...

:18:29. > :18:34.that was the deal and we stuck to it. Not everything has been

:18:34. > :18:36.necessarily clear with legislation. It's quite clear. I hope that Lord

:18:36. > :18:41.Oakeshott and the Deputy Prime Minister, Nick Clegg, would accept

:18:41. > :18:44.that fiscal union, which looks like it will happen, would mane a

:18:44. > :18:48.fundamental change between in the relationship between this country

:18:48. > :18:51.and the European Union, and if that is the case, I think it's common

:18:51. > :18:55.ground between the Liberal Democrats and the Conservatives,

:18:55. > :18:59.potentially common ground to say fiscal union would mean a

:18:59. > :19:04.fundamental change and it would triger referendum. Why not wait

:19:04. > :19:08.until that point? We are already having hints from the Prime

:19:08. > :19:13.Minister. You and your friends tonight voting are wreckers, you

:19:13. > :19:15.are wrecking the economy and the coalition agreement. That's a bold

:19:15. > :19:21.pledge. It's about time you stuck to the deal. When you think about

:19:21. > :19:25.the rising unit cost, the rising employment costs, the lack of

:19:25. > :19:29.competitiveness in Europe, many people would argue that a lot is

:19:29. > :19:32.wrong with the European Union is having a major impact on the

:19:32. > :19:36.British economy. The obsession we have on the Conservative backbench

:19:36. > :19:42.is... Very quickly. What about the rest of the world? I didn't

:19:42. > :19:46.interrupt you. You go on and on. The tone of the debate needs to be

:19:46. > :19:50.measured and calm. The concern the backbenchers have was to grow the

:19:50. > :19:53.economy, jobs and tackle the deficit. The Government shouldn't

:19:53. > :20:01.be a One Trick Pony, we can teal with Europe and the economy.

:20:01. > :20:05.many resignation also there be? don't know. You don't know if any

:20:05. > :20:08.aids... I think PPSs need to put forward their own case and put

:20:08. > :20:14.forward their own arguments as to why or why not they won't stay in

:20:14. > :20:16.the Government. The figures are going to be probably 80-90 which is

:20:16. > :20:22.a significant number of the backbenchers that are not happy

:20:23. > :20:28.with the way this has been played. I hope the will think again in this

:20:28. > :20:34.11th hour -- I hope the Government will think again. That's the deal

:20:34. > :20:43.and you have to stick to it. Thank you. Do you care who empties your

:20:43. > :20:51.bins? A private company or the council.

:20:51. > :20:54.Does outsourcing always work? David Thompson reports.

:20:54. > :20:57.It used to be that councils ran local services, everything from

:20:57. > :21:02.emptying the bins to running the libraries of these days, however,

:21:02. > :21:07.more and more of that work is being done by private companies and even

:21:07. > :21:12.charities. It's called outsourcing, and here in stock, they had a

:21:12. > :21:18.radical vision for the future, one where everything the council did

:21:18. > :21:23.would be done by somebody else -- in Suffolk. At least that was the

:21:23. > :21:29.plan. The The original plan was for us to

:21:29. > :21:33.be a light council, an easy council that no longer did things, so that

:21:33. > :21:38.we would be outsourcing all sorts of services and going down to a

:21:38. > :21:41.very small core. We found it simply didn't work. A one-size fits all

:21:41. > :21:45.solution wouldn't work in a county the size of Suffolk and we felt

:21:45. > :21:49.that also in trying to do it so quickly, we were not taking

:21:49. > :21:54.communities along with us. Suffolk hoped to shave almost 30% from its

:21:54. > :21:58.budget by contracting services out. Like all councils, it's still got

:21:58. > :22:01.to save that kind of money. Is going private always best? There is

:22:01. > :22:05.a choice for Local Government. They don't have to contract services out,

:22:05. > :22:08.they could improve the way they deliver their own in-house

:22:08. > :22:12.provision and drive down costs and improve services that way. Despite

:22:12. > :22:17.that, outsourcing is all the rage. The Government wants to make it

:22:17. > :22:22.easier for councils to contract services out and the private sector

:22:22. > :22:25.are prtty keen to help too. Wonder why -- pretty keen. The CBI will be

:22:25. > :22:29.representing their members who do have a vested interest in more

:22:29. > :22:33.services being bought in from private companies. But that doesn't

:22:33. > :22:36.mean there can't be significant advantages, both for councils

:22:37. > :22:40.because they begin to think what they are trying to deliver, so they

:22:40. > :22:44.have to think about and specify the services they want. If they can get

:22:44. > :22:47.a good private company or good voluntary organisation to do it,

:22:47. > :22:51.they might indeed get a better service. Suffolk is a Conservative-

:22:51. > :22:55.run council but now believes its former enthusiasm for wholesale

:22:55. > :23:02.outsourcing could provide a Sal Tory lesson for all local

:23:02. > :23:06.authorities -- salutory. There are lessons to be learned. You have to

:23:06. > :23:10.be realistic. If you want to do it, take it at a pace that it will take

:23:10. > :23:14.people along with you and realise that not everything will be able to

:23:14. > :23:18.be outsourced. Councils are in a tough place, making swinging cuts

:23:18. > :23:21.but they have to keep the public happy. If nothing else, Suffolk has

:23:21. > :23:28.asked a big question, just how much faith should politicians really

:23:28. > :23:31.place on outsourcing? That was David Thompson. We are

:23:31. > :23:35.joined by Heather Wakefield from UNISON. Before I come to you, I

:23:35. > :23:38.want to come to you John Cridland first, you are a fan of councils

:23:38. > :23:42.outsourcing and getting businesses involved, but we have heard there

:23:42. > :23:47.that it's not realistic to expect councils to outsource everything

:23:47. > :23:49.even in a bid to save money. Do you agree? I do. The last thing we want

:23:50. > :23:54.is an absolute philosophy that everything has to be outsourced or

:23:54. > :23:57.nothing had to be... I thought that was your philosophy that everything

:23:57. > :24:01.that can be should be? Councils look at whether they're serving

:24:01. > :24:04.their constituents' interests well and what can be done to make that

:24:04. > :24:09.service better and they should look at the potential of outsourcing. If

:24:10. > :24:13.it's a better answer, use it. Bin collection is the example you

:24:13. > :24:17.started with. Do we mind who empties our bin, we want to know

:24:17. > :24:20.it's going to be emptied regularly and effectively. So there it's

:24:20. > :24:23.about saving money and people don't mind. Heather Wakefield, that

:24:23. > :24:27.sounds like a sensible way of approaching it There are a number

:24:27. > :24:31.of problems, I'm afraid, with this approach. First of all, there is

:24:31. > :24:35.very little evidence indeed to show that outsourcing has improved

:24:35. > :24:39.services. It has cut the cost of services but generally at the

:24:39. > :24:42.expense of quality of service and certainly at the expense of the pay,

:24:42. > :24:46.the pensions and the conditions of local government workers. Is that

:24:46. > :24:52.the same as the quality that is actually being delivered? Are you

:24:52. > :24:56.saying it has cut money? Essex is saving money, Barnet is saving

:24:56. > :25:00.money. If the quality is the same, I would argue that council tax

:25:00. > :25:04.payers would say they're happy as long as they don't pay more? Take a

:25:04. > :25:09.look at social care and you will see that the quality of care has

:25:09. > :25:13.deteriorated significantly in many places. We've had the Southern

:25:13. > :25:18.Cross example recently, private equity company making large amounts

:25:18. > :25:21.of money and the service collapsing. I put that to you, John? Where you

:25:21. > :25:24.have an example of poor practice, I wouldn't defend it and contracts

:25:24. > :25:29.can go wrong in the private sector as in council provision, but it's

:25:29. > :25:32.down to the council to specify the outcomes it's looking for and make

:25:32. > :25:36.sure the contract with outsourced providers delivers value for the

:25:36. > :25:40.local people. Do you accept now, because national Government, and

:25:40. > :25:44.Number Ten particularly, has made a great deal of this idea of

:25:44. > :25:47.outsourcing, it wants to put the public sector to one side and get

:25:47. > :25:51.as many businesses involved as possible. Do you think now they do

:25:51. > :25:56.have to row back from that philosophy, you cannot do that in a

:25:56. > :26:00.rolled out way? What I believe is that competition leads to better

:26:00. > :26:03.service. But does it? If we go oath out for a meal at a weekend we'll

:26:03. > :26:06.make a decision which restaurant will give us the best value for

:26:06. > :26:09.money and it's the same with competition in Public Services. If

:26:10. > :26:13.you test out whether there's another provider, it could be a

:26:13. > :26:16.charity or social enterprise, could be a mutual, could be a private

:26:16. > :26:21.sector business that can provide the service better, the public's

:26:21. > :26:26.likely to get a better deal than if it's a monopoly. That's the test.

:26:26. > :26:29.Why shouldn't there be competition in local councils? There are ways

:26:29. > :26:32.of managing Public Services that generate internal competition. You

:26:32. > :26:35.don't need to play the private market in order to generate

:26:35. > :26:38.competition. You are saying not at all, even if there is clear

:26:38. > :26:42.evidence that it saves money and the quality is still either the

:26:42. > :26:46.same or improved? There is absolutely no evidence to show that

:26:46. > :26:50.Public Services have improved as a result of outsourcing and indeed,

:26:50. > :26:53.at this point in time, a large number of councils are bringing

:26:53. > :26:58.services like housing management, environmental services and so on

:26:58. > :27:01.back in-house. The problem with outsourcing is that it adds up to a

:27:01. > :27:04.massive haemorrhaging of public money through procurement costs,

:27:04. > :27:09.through fraud, I'm afraid the Government's own National Audit

:27:09. > :27:13.Office has said that 1.3 billion pounds a year is lost in fraud.

:27:13. > :27:16.That is through privatisation. going to have to wrap it up there.

:27:17. > :27:21.Thank you very much. Just time before we go to talk about all

:27:21. > :27:25.things Europe. Adam Fleming is on College Green. Give us an idea of

:27:25. > :27:28.the numbers stacking up? Good afternoon. I'll give you an idea of

:27:28. > :27:33.what is happening here. We have a demonstration by supporters in

:27:33. > :27:36.favour of a referendum on the EU. It's a mixture of the campaign for

:27:36. > :27:39.a referendum. I see some UKIP banners there and some signs of

:27:39. > :27:42.people from the BNP. One of the banners says, forget democracy in

:27:42. > :27:46.Libya, what about here in the UK. That is what is happening here, the

:27:46. > :27:51.question is, what is happening over there? It's a febrile atmosphere.

:27:51. > :27:53.The number everyone is focusing on is 41, that's the biggest historic

:27:53. > :27:56.rebellion amongst the Conservative Party on Europe in the past. That

:27:56. > :28:00.happened when John Major was Prime Minister, so everyone is looking to

:28:00. > :28:03.see if David Cameron will be able to, unfortunately for him, top that

:28:03. > :28:08.number. We are going to have to wait until tonight when the vote is

:28:08. > :28:11.held to see how many rebels stick to their guns and walk through the

:28:11. > :28:15.lobby supporting the motion calling for a referendum on Britain's

:28:15. > :28:19.membership of the EU. What about the other parties? A good point.

:28:19. > :28:21.When we are looking at the voting list for who supported this

:28:21. > :28:25.referendum call, it won't just be Conservative Euro-Sceptics, this

:28:25. > :28:29.will be some members of Labour supporting it, most notably Keith

:28:29. > :28:32.Vaz, the senior Labour MP, he's pro-Europe but pro-referendum. We

:28:32. > :28:37.have heard there will be a Liberal Democrat, Steven Gilbert, who is

:28:37. > :28:43.supporting in favour of the referendum as well, and then

:28:43. > :28:46.there's the DUP in Northern Ireland. Mr Shannon in fact was instrumental

:28:46. > :28:51.in making this happen. Sounds very exciting there. That's all for

:28:51. > :28:54.today. Thanks to our guests, especial sli John cild land, for